Finding Text
Criteria: Per 2 CFR § 200.318(d), non-Federal entities must avoid the acquisition of unnecessary or duplicative items. Non-federal entities are required to maintain effective procurement procedures and internal controls to ensure goods and services procured with federal funds are necessary, reasonable, and not duplicative. Condition: While performing procedures over the Town’s federal grant program activity, we noted that the Town incurred a duplicated cost when it processed and paid the same contractor invoice twice. Cause: The Town has not established or implemented written procedures requiring staff to review previous purchases or confirm whether services have been performed before initiating new procurements. Effect: Failure to ensure that goods purchased and services procured are necessary and nonduplicative increases the risk of waste and mismanagement of federal funds. This may result in unallowable costs being charged to federal awards and could require repayment of questioned costs to the granting agency. Questioned Cost: $37,430. Recommendation: As discussed at item 2025-001, we recommend Town develop, formally adopt, and implement written policies and procedures to comply with Uniform Guidance (2 CFR 200). Views of responsible officials: See management’s responses to findings on Page 78.